Years ago I went through this exercise.
With all the stories (again) on CEO pay vs pay for employees, yada, yada, yada.
I get it. I understand. I understand the frustration. I understand the anger.
XOM's CEO:
- salary: only $1.5 million last year (pretty paltry in the big scheme of things)
- total compensation: $16 million last year
XOM has 4.23 billion shares outstanding.
$16 million / 4.23 billion shares = 0.38 cents share
That's not 38 cents, that's 0.38 cents.
$16 million / $256.235 billion (market cap) = 0.00006 or 0.006%
$256,235,000,000 market cap + $16 million = $256,251,000,000
$256,235,000,000 / 4.23 billion = $60.575650118 / share
$256,251,000,000 / 4.23 billion = $60.579432624 / share
Delta:
$60.575650118 - $60.579432624 = $0.0037825 / share or 0.4 cents / share
That's not 40 cents, that's 0.4 cents.
My daughter is being paid $3.48 / share to hold XOM.
Number of XOM employees: 70,000.
$16 million / 70,000 = $230 / year or $20 / month, and after taxes, SS, medicare, union dues, etc, about $15 / month.
Bottom line:
I don't know if the CEO is "worth it." I don't know if he is a great CEO or a mediocre CEO. I doubt if anyone really knows.
But pay him absolutely nothing in compensation -- zero, nada, zilch -- and all things being equal, the company would be "worth" 0.4 cents/share less.
Jealousy is a sad way to live one's life. Being jealous about someone else's pay is a sad way to live one's life.
Biden, AOC and the like will cost Americans a lot more than $20 / month.
Quick: how much did it cost you to fill up your SUV this week?
Meanwhile, investing in XOM seems like it would be so much more productive.
By the way:
- 2017: 69,600 employees
- 2019: 74,900 employees
Delta: this CEO added 5,300 new employees between 2017 and 2019.
5,300 is almost 8% growth. And most of these jobs were high-paying jobs with great benefits.
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